After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30, 2019, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2019) follows. No Account Title Debit Credit 101 Cash $ 39,064 106 Accounts receivable 13,418 126 Computer supplies 2,645 128 Prepaid insurance 2,160 131 Prepaid rent 3,060 163 office equipment 9,000 164 Accumulated depreciation-office equipment $ 167 Computer equipment 20,400 168 Accumulated depreciation-Computer equipment 201 Accounts payable 210 Wages payable Unearned computer services revenue 307 Common stock 73,000 318 Retained earnings 319 Dividends 6,200 403 Computer services revenue 20,419 612 Depreciation expense-office equipment 613 Depreciation expense-Computer equipment 623 Wages expense 2,225 637 Insurance expense 640 Rent expense 652 Computer supplies expense Advertising expense 1,660 676 Mileage expense 677 Miscellaneous expenses 150 684 Repairs expense-Computer 795 Totals $101,419 $ 101,419 w 236 655 Business Solutions had the following transactions and events in December 2019. Dec. 2 Paid $960 cash to Hillside Mall for Business Solutions share of mall advertising costs. 3 Paid $460 cash for minor repairs to the company's computer. 4 Received $4,350 cash from Alex's Engineering Co. for the receivable from November. 10 Paid cash to Lyn Addie for six days of work at the rate of $100 per day. 14 Notified by Alex's Engineering Co. that Business Solutions bid of $7,600 on a proposed project has been accepted. Alex': paid a $1,800 cash advance to Business Solutions. 15 Purchased $2,108 of computer supplies on credit from Harris office Products. 16 Sent a reninder to Gomez Co. to pay the fee for services recorded on November 8. 20 Completed a project for Liu Corporation and received $6,425 cash. 22- Took the week off for the holidays. 26 28 Received $3,800 cash from Gomez Co. on its receivable. 29 Reimbursed S. Rey for business automobile mileage (500 miles at $8.27 per mile) 31 The company paid $1,000 cash in dividends. The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company's first three months. a. The December 31 inventory count of computer supplies shows $650 still available b. Three months have expired since the 12-month insurance premium was paid in advance. c. As of December 31, Lyn Addie has not been paid for four days of work at $100 per day d. The computer system acquired on October 1, is expected to have a four-year life with no salvage value e. The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value f. Three of the four months' prepaid rent have expired. Required: 1. Prepare journal entries to record each of the December transactions and events for Business Solutions. 2-a. Prepare adjusting entries to reflect a through f. 2-b. Post the journal entries to record each of the December transactions from Requirement and adjusting entries from Requirement 2A. After completing Requirement 7 post the closing entries to the general ledger accounts. 3. Prepare an adjusted trial balance as of December 31, 2019 4. Prepare an income statement for the three months ended December 31, 2019 5. Prepare a statement of retained earnings for the three months ended December 31, 2019. 6. Prepare a balance sheet as of December 31, 2019. 7. Record the necessary closing entries as of December 31, 2019 and then post the closing entries to the general ledger in Requirement 28 8. Prepare a post-closing trial balance as of December 31, 2019. Post the journal entries to record each of the December transactions from Requirement 1 and adjusting entries from Requirement 2A. After completing Requirement 7. post the closing entries to the general ledger accounts. 101: Cash Debit 106: Accounts Receivable Debit Credit Date Credit Balance 39 064 Date Dec 01 Dec. 01 Balance 13,418 126: Computer Supplies 128: Prepaid Insurance Windows sace 126: Computer Supplies Debit Credit 128: Prepaid Insurance Debit Credit Date Balance 2,645 Date Dec 01 Balance 2,160 Dec. 01 131: Prepaid Rent Debit Credit 163: Office Equipment Debit Credit Date Dec. 01 Balance 3,060 Date Dec 01 Balance 9,000 164: Accumulated Depreciation - Office Equipment Date Debit Credit Balance Dec. 01 167: Computer Equipment Debit Credit Date Dec 01 Balance 20,400 0 168: Accumulated Depreciation Computer Equipment Date Debit Credit Balance 201: Accounts Payable Debit Credit Date Balance 201: Accounts Payable Debit Credit 168: Accumulated Depreciation-Computer Equipment Date Debit Credit Balance Dec. 01 Balance Date 0 0 Dec. 01 210: Wages Payable Debit Credit Date Balance 236: Unearned Computer Services Revenue Date Debit Credit Balance Dec. 01 0 0 Dec 01 307: Common Stock Debit Credit 318: Retained Earnings Debit Credit Balance Date Balance 73,000 Date Dec 01 0 Dec 01 403: Computer Services Revenue 319: Dividends 319: Dividends Debit Credit 403: Computer Services Revenue Debit Credit Date Date Dec 01 Balance 6,200 Balance 28,419 Dec. 01 612: Depreciation Expense-Office Equipment Date Debit Credit Balance Dec. 01 613: Depreciation Expense--Computer Equipment Date Debit Credit Balance Dec 01 0 0 623: Wages Expense Debit Credit 637: Insurance Expense Debit Credit Balance Date Dec 01 Balance 2.225 Date Dec 01 640: Rent Expense Debit Credit 652: Computer Supplies Expense Debit Credit Balance Balance Date Dec 01 Date Dec 01 0 655: Advertising Expense Debit Credit 676: Mileage Expense Debit Credit Balance Date Dec 01 Balance 1.668 Date Dec 01 634 677: Miscellaneous Expense Debit Credit 684: Repairs Expense-Computer Debit Credit Date Balance 150 Balance 795 Date Dec. 01 Dec 01 Date Web Credit Dalance Ver CTEUR Duran Dec 01 1,668 Dec 01 634 677: Miscellaneous Expense Debit Credit 684: Repairs Expense-Computer Debit Credit Date Dec 01 Balance 150 Date Dec. 01 Balance 795 901: Income Summary Debit Credit Date Balance Prepare a balance sheet as of December 31, 2019. BUSINESS SOLUTIONS Balance Sheet December 31, 2019 Assets 0 0 Total Assets 0 Liabilities 0 0 0 0 Total Assets Liabilities 0 Total Liabilities Equity 0 Total equity Total Liabilities and Equity A: A 0 Journal entry worksheet Close the revenue account(s). Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31 Record entry Clear entry View general journal Close the expense accounts. Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31 Close the Income summary account. Note: Enter debits before credits. Debit General Journal Date Credit Dec. 31 Record entry Clear entry View general journal Close the Dividends account. Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31 BUSINESS SOLUTIONS Post-Closing Trial Balance December 31, 2019 Debit Credit Cash Accounts receivable Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciationOffice equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Wages payable Unearned computer services revenue Common stock Retained earnings Totals $ $ 0 $ 0